FROM A PRODUCE MARKET TO A FARMERS MARKET: TRANSITIONING AND HOW TO STAND OUT. Photo: Yuri Krasov

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1 FROM A PRODUCE MARKET TO A FARMERS MARKET: Photo: Visit Jacksonville TRANSITIONING AND HOW TO STAND OUT TN Farmers Market Bootcamp Spring 2013 Janie Becker, Rutherford Co. Extension Agent and Market Manager Photo: Yuri Krasov WHAT IS A PRODUCER-ONLY MARKET? A market at which vendors are only permitted to sell items which they have themselves produced Every booth rented by local farms/producers and staffed by the owner, family member, or employee No resellers or 2 nd hand products 1

2 WHAT ARE THE BENEFITS? No middle men More potential profits to local farms Ensure product quality Ability to sell smaller quantities/specialty products Build relationships/loyalty with your customers Connect public with local agriculture Improves vendor-vendor relationships WHAT ARE THE DRAWBACKS? Potentially less selection Availability more sensitive to severe weather (droughts, floods, heat, other atypical conditions) Requires education of consumers Tough to verify Requires time and money to enforce 2

3 MAKING THE TRANSITION TO PRODUCER-ONLY Give vendors a season s notice Spend time on your rules; be clear yet concise Encourage good will between vendors; consider a reporting fee for accusations of reselling MAKING THE TRANSITION TO PRODUCER-ONLY Don t forget to educate customers! Provide brochures, signs, handouts, etc. on what Producer-Only means to the market, local farms, and to the community 3

4 MAKING THE TRANSITION TO PRODUCER-ONLY 100% ALWAYS? Depends on market s mission Exceptions are difficult to manage and can create confused customers The more relaxed your rules are, the more energy you will spend trying to enforce them. ENFORCING PRODUCER-ONLY RULES Know signs of potential resales Vendor unfamiliar with product details Produce out of season Brand new boxes, crates Difficulty scheduling farm visit Don t be afraid to ask outright if there s a reasonable concern Managers: Do not talk behind vendor s back to others! 4

5 ENFORCING PRODUCER-ONLY RULES Farm visits are necessary ENFORCING PRODUCER-ONLY RULES Producer-led markets will likely need a board to remain impartial Establish penalties and re-evaluation plan Be firm and consistent! 5

6 NOW WHAT?? HOW DO YOU MAKE IT PAY OFF? HOW CAN YOU COMPETE? Encourage a healthy, positive market By all means, be friendly! Be memorable; tell your story Offer the unexpected Grow for flavor Provide samples Photo: Steve Savage 6

7 MAKE IT PERSONAL Farm Signs, Farm Signs, Farm Signs! Put some of yourself into sales space Photo boards/albums Props/decorations Offer daily specials Don t sell yourself short Photo: RCFM CURE THE SHY CUSTOMER WITH SIGNS! Price cards, random product facts, etc. Think about the questions that customers ask and make signs that answer them Vegetable varieties Storage ideas Preparation I m Tender; Please Don t Squeeze Me! Saves your time and engages shoppers 7

8 KNOW YOUR PRODUCTS, KNOW YOUR CUSTOMERS You know your products best; Share that with your customer Picked last night- Taste the Difference! Stock up your freezer! Fresh from the oven Want to know more about our farm? Just ask! KNOW YOUR PRODUCTS, KNOW YOUR CUSTOMERS Growing something unusual? Offer tried and true recipes Don t like a veggie? No need to let on Find someone who loves it and get a suggestion from them. 8

9 BUILD RELATIONSHIPS Get to know your fellow vendors Maintain a cheerful market Promote each other NO PRICE WARS!! Photo: RCFM Photo: Tacoma FM BUILD RELATIONSHIPS Recognize repeat customers Give them what no grocery store can Talk about your farm and be willing to share information about your growing practices Photo: RCFM 9

10 BUILD RELATIONSHIPS FM customers used to focus on bargains. Now, they want to connect with YOU! Photo: RCFM Photo: Paul Aiken INNOVATION FOR THE MARKET: INCREASING SALES AND CUSTOMERS BY PROVIDING MORE PAYMENT OPTIONS 10

11 WHY OFFER CREDIT/DEBIT PAYMENTS? Customers are cash poor No ATM nearby Card payments increase sales Improve sales of high $ products SNAP BENEFITS (SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM) EBT (ELECTRONIC BENEFITS TRANSFER) PAYMENTS 11

12 SNAP AT THE MARKET EBT sales allow whole new customer base Capitalize on the Farmers Market WIC program Connect more consumers with farmers Improve health and nutrition in the community ACCEPTING EBT SNAP managed by the USDA Food and Nutrition Service Markets must apply to accept EBT payments Allow 45 days or more for application to be processed 12

13 First Year Results at the Rutherford County Farmers Market: Over 10% ($29,298) of overall market sales were made with tokens 78% ($22,917) in credit or debit Many new sales 22% EBT ($6,381) ALL new sales! CARD READER TYPES Individual vendor systems, e.g., Square Central card reader for market Wired - requires electricity and phone line Needs to be staffed at all times Mobile card reader for market Allows more freedom for staff Must carry tokens around More expensive and requires subscription Transaction fees apply for all payment types 13

14 HOW IT WORKS Base card payments on scrip system Central or mobile card reader Market staff swipes card and gives tokens in exchange No cash Customer buys goods with tokens Vendors turn in tokens Market reimburses vendors HOW IT WORKS Scrip system Most use wooden tokens (paper is easily counterfeited) If you use paper scrip, Kan t Kopy paper or similar non-photocopy-able paper is recommended. Plastic tokens are thinner, more durable and more expensive than wood. 14

15 HOW IT WORKS-STEP BY STEP Market staff swipes card and gives tokens in exchange No cash involved Three simple steps: 1. Swipe Card 2. Get Tokens 3. Buy Food HOW IT WORKS-STEP BY STEP Vendors turn in tokens Turn tokens in each day or accumulate Market gives vendor a receipt 15

16 HOW IT WORKS-STEP BY STEP Market reimburses vendors Options: 1. Cash reimbursement when vendor turns in tokens 2. Check is written to vendor when tokens are turned in 3. Receipt is issued when vendor turns in tokens; vendors receives a check at a following market, by mail, or as direct deposit 4. Reimbursements made when a vendor reaches a set $ amount of tokens TOKEN TYPES Credit/Debit Tokens No restrictions; Treat tokens like cash EBT Tokens Purchases are restricted to foods, seeds and plants which produce food for the household to eat. Cannot be used for ready-to-eat foods Vendors cannot make change; therefore, tokens come in smaller increments 16

17 Credit/Debit Front TOKEN DESIGN Scrip design must include at least these elements: Market or association name EBT tokens marked No change given Use different colors of ink on scrip if using both debit/credit and EBT payments in market Credit/Debit Back EBT tokens in small denominations $1 EBT Front EBT Back 25 EBT Front MAKING IT SUCCESSFUL Vendor Education!! Dedicated staff/volunteers(?) At-market management Bookkeeping Clearly marked signage at market Consistent reimbursement procedures for vendors! 17

18 MAKING IT SUCCESSFUL Advertisements Newspaper, Radio, TV, etc. Community partners Department of Human Services Health Department Housing Authority Public Transportation Parks & Recreation County Extension RCFM Online: (RCFM link in right hand column) CountyFarmersMarket 18

19 Questions? me at: 19